Empirical Analysis of Job Matching across Space : Evidence from Chinatown and Urban Agglomeration

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The labor markets in developing economies in turbulent times have undergone a distinguished transformation over the past three decades. Urban population has grown, while market size and vacancy also has increased, congestion also has grown across countries. To understand the evidence and theory of spatial mismatch between unemployment and vacancy in economic geography, we have to describe strategic behavior of unemployed and establishments deeply. Such structural underpinning of search-match frictions in urban labor market provides the fine empirical strategy and evaluation method of active labor market program to achieve wage growth, higher match quality, and flexible turnovers. At the same time, since recent empirical and theoretical researches have emphasized the role of informal job network on job search and matching in developing economies as well as labor market in developed economies. This research proposes a new mechanism linking job search-matching, networks, and market size i … More n developing economies to detect explicit the role of urban landscape, i. e., the Chinatown and urban agglomeration. It investigates the testable implications of these informal linkages in the Chinatown and urban agglomeration using survey data and establishment-level data gathered from developing economies like Indonesia, Thailand, or other developing economies. To characterize the search-matching mechanism in urban labor market, this research describes skill formation process and the returns to general and specific skill. This research identifies the key players(information hubs) of the formation of job network. In addition to these, we investigate the geographic extent of job network and its quality. Based on these points of views, this research compares the roles(complementarities and substitutability) of informal transactions with formal transactions in urban labor market to seek for optimal unemployment revels, durations, and the long-term match quality. This research has investigated the inside the urban landscape of the Chinatowns and the relationship between entrepreneurship and residential choice based on theoretical characterization of urban labor market. Less